ByteDance Seeks Record $9.5 Billion Loan

ByteDance, the Chinese tech giant behind TikTok, is seeking a massive $9.5 billion loan, aiming to secure the largest dollar-denominated corporate facility ever seen in Asia, excluding Japan. This news comes from separate reports by Reuters and Bloomberg.

Citigroup, Goldman Sachs, and JPMorgan are reportedly coordinating the loan, structured with a three-year tenor and an option to extend it to five years.

The move signals ByteDance's intention to leverage the current state of the Asian loan market, which is overflowing with available capital despite a slowdown in deal activity. Bloomberg data reveals that dollar loan volume (excluding bilateral agreements) plummeted by 44% in Asia, excluding Japan, during the first half of the year, reaching a 14-year low of $45.5 billion.

The loan's proceeds will partially refinance a $5 billion dual-tranche facility obtained by ByteDance in 2021, with the remainder dedicated to working capital, according to sources who spoke with Bloomberg. Furthermore, the loan includes a greenshoe option, potentially increasing its size beyond the initial $9.5 billion, the sources added.

ByteDance's ambition extends beyond its established online advertising domain. The company is actively pursuing growth in e-commerce and generative AI, investing significantly in large language models and ChatGPT-like applications within China. Globally, TikTok is preparing to expand its live shopping platform in Europe, capitalizing on its initial success in the US market, as reported by Bloomberg.